On Bauer Business Focus — A conversation on the potential effect of the federal shutdown on Houston’s economy and the upcoming debt ceiling with Andrew Schneider, business reporter for KUHF 88.7 FM.
The partial government shutdown that began on Oct. 1 has left everyone unsure of its end date, and the approaching debt ceiling has further encouraged debate in Washington D.C.
The shutdown will have little to no effect on Houston and Texas, Director of the Institute for Regional Forecasting at the C. T. Bauer College of Business at the University of Houston Bill Gilmer said during his recent visit to Bauer Business Focus.
“The macroeconomic effects on the U.S. economy are going to be small and certainly for Texas, and for Houston, they’re even smaller,” Gilmer said. “I think congress has gone out of its way to make this the least inconvenience possible for a lot of folks to postpone some difficult decisions and kick the can down the road.”
The state debt ceiling, set to come up in congress by Oct. 17, is a much more important question for the market as estimates predict the treasury can only fund spending until Nov. 1 without raising the limit, Gilmer said.
“The market is much more concerned about the debt limit,” Gilmer said. “Almost all discretionary spending has to be covered by borrowing at this point in time. The last thing we want to happen is for there to be any kind of a default on the debt to postpone a payment on treasury debt.”
Click here to hear the full interview.